Impacts of Innovations in Financial Services Delivery on the Macroeconomy in Nigeria

This study investigates the impacts of innovations in financial services delivery on the real gross domestic product (Real GDP) and real money demand in Nigeria. The autoregressive distributive lag model (ARDL) is applied to Fisher’s Equation of Exchange using data from the volume of transactions on the automated teller machine (ATM), point of sale (POS), cheque, and electronic transfer (ETR) as indices of financial innovation and control over monetary policy rate (MPR) and lending rate (LR) for 2009M1 to 2019M12. Findings reveal that financial innovations in the financial service delivery pose a significant impact on the real gross domestic product and real money demand as a proxy for macro economy performance with varying directional impacts in the short-term and long run. The study opines those financial innovations are effective for expansionary policy action on real GDP and a managed real money demand within a short-term policy framework.